However, I proceed with my 2013 stock picks. Today,
Dividend Aristocrats are in my main focus. Those stocks raised dividends over a
period of more than 25 consecutive years and being selected by the credit rating
agency Standard & Poor’s.
These are my criteria:
- Forward P/E under 15
- Past 5Y Sales growth over 5 percent
- Earnings per share growth for the next five
years over 5 percent
- Operating Margin over 5 percent
Fourteen Dividend Aristocrats fulfilled these
criteria of which three yielding above three percent. Nine are currently
recommended to buy. Dividend Aristocrats are not as cheap as other potential
dividend growth stocks because the market has identified the quality of the
stocks. Would you pay a higher price for more quality or do you prefer cheaper
stocks with more return potential. Let me know your thoughts below in our
comment box.
Here are the 3 most recommended Aristocrats:
Here are the 3 most recommended Aristocrats:
V.F. Corporation (NYSE:VFC) has a market capitalization of $16.73 billion. The company employs 58,000 people, generates revenue of $9.459 billion and has a net income of $890.39 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.413 billion. The EBITDA margin is 14.95 percent (the operating margin is 13.16 percent and the net profit margin 9.41 percent).
Financial Analysis: The total debt represents 22.72 percent of the company’s assets and the total debt in relation to the equity amounts to 46.76 percent. Due to the financial situation, a return on equity of 21.18 percent was realized. Twelve trailing months earnings per share reached a value of $9.01. Last fiscal year, the company paid $2.61 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.85, the P/S ratio is 1.77 and the P/B ratio is finally 3.71. The dividend yield amounts to 2.29 percent and the beta ratio has a value of 0.89.
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| Long-Term Stock History Chart Of V.F. Corporation (VFC) |
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| Long-Term Dividends History of V.F. Corporation (VFC) |
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| Long-Term Dividend Yield History of V.F. Corporation (VFC) |
Medtronic (NYSE:MDT) has a market capitalization of $43.29 billion. The company employs 45,000 people, generates revenue of $16.184 billion and has a net income of $3.415 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5.127 billion. The EBITDA margin is 31.68 percent (the operating margin is 25.61 percent and the net profit margin 21.10 percent).
Financial Analysis: The total debt represents 32.14 percent of the company’s assets and the total debt in relation to the equity amounts to 62.13 percent. Due to the financial situation, a return on equity of 20.65 percent was realized. Twelve trailing months earnings per share reached a value of $3.11. Last fiscal year, the company paid $0.97 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.78, the P/S ratio is 2.67 and the P/B ratio is finally 2.59. The dividend yield amounts to 2.43 percent and the beta ratio has a value of 0.88.
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| Long-Term Stock History Chart Of Medtronic (MDT) |
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| Long-Term Dividends History of Medtronic (MDT) |
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| Long-Term Dividend Yield History of Medtronic (MDT) |
Illinois Tool Works (NYSE:ITW) has a market capitalization of $28.64 billion. The company employs 65,000 people, generates revenue of $17.786 billion and has a net income of $2.017 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3.320 billion. The EBITDA margin is 18.67 percent (the operating margin is 15.35 percent and the net profit margin 11.34 percent).
Financial Analysis: The total debt represents 22.19 percent of the company’s assets and the total debt in relation to the equity amounts to 39.83 percent. Due to the financial situation, a return on equity of 20.60 percent was realized. Twelve trailing months earnings per share reached a value of $4.10. Last fiscal year, the company paid $1.40 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.08, the P/S ratio is 1.61 and the P/B ratio is finally 2.98. The dividend yield amounts to 2.46 percent and the beta ratio has a value of 1.16.
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| Long-Term Stock History Chart Of Illinois Tool Works (ITW) |
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| Long-Term Dividends History of Illinois Tool Works (ITW) |
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| Long-Term Dividend Yield History of Illinois Tool Works (ITW) |
Take a closer look at the full list of my best Dividend Aristocrats stock picks 2013. The average P/E ratio amounts to 17.86
and forward P/E ratio is 12.88. The dividend yield has a value of 2.52 percent.
Price to book ratio is 3.02 and price to sales ratio 1.49. The operating margin
amounts to 13.87 percent and the beta ratio is 0.75. The average stock from the
screening results has a debt to equity ratio of 0.51.
Here is the full table with
some fundamentals (TTM):
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| Dividend Aristocrat Growth Picks (Click to enlarge) |
Related stock
ticker symbols:
T, ABT, BMS,
SWK, AFL, XOM, MMM, ITW, MDT, VFC, WMT, HRL, FDO, BCR
Selected Articles:
* I am long MDT, WMT. I
receive no compensation to write about these specific stocks, sector or theme.
I don't plan to increase or decrease positions or obligations within the next
72 hours.
For the other stocks: I
have no positions in any stocks mentioned, and no plans to initiate any
positions within the next 72 hours. I receive no compensation to write about
any specific stock, sector or theme.